Gold mining company Zijin, plans to raise nearly $3.2 billion through its initial public offering (IPO) in Hong Kong, making it the second largest IPO of the year.
Zijin Mining's international unit is set to launch an initial public offering (IPO) for a staggering $5.24 billion, with four major cornerstone investors pledging significant investments. The four largest cornerstone investors, Singapore wealth fund GIC, private equity firm Hillhouse, fund company BlackRock, and fund company Schroders, will collectively invest HK$12.47 billion (approximately $1.6 billion).
Schroders and BlackRock will each invest US$120 million, while Singapore wealth fund GIC and private equity firm Hillhouse will each buy US$150 million worth of shares. This combined investment represents about 50% of the offering, highlighting the strong interest in Zijin Gold's IPO.
The deal has attracted a total of 29 cornerstone investors, underscoring the appeal of the offering. Retail investors will have access to 10% of Zijin Gold's shares, while the rest will be allocated to international investors.
The strong performance of Hong Kong-listed gold-related stocks this year, coupled with the almost 40% gain in the price of gold today, has contributed to the anticipated popularity of the IPO among both international and local retail investors.
Zijin Mining, one of China's largest miners of gold and copper, will own 86.7% of Zijin Gold after the IPO, or 85% if an overallotment option is exercised. The IPO is scheduled for May.
It's worth noting that the search results do not contain information about the four largest institutional investors in the capital increase during Zijin Gold's Initial Public Offering (IPO). However, the investments by these 29 cornerstone investors represent a significant portion of the offering, marking a strong start for Zijin Gold's IPO.
On Friday, the gold spot price was US$3,682 per ounce, providing a promising backdrop for the gold mining industry and Zijin Gold's IPO.
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